All Forum Posts by: David Menapace

Hey Zachary, the lender that I like to use is Allison Capital.  They require 3 months.

Hey Leo! I'm an investor as well as an agent here in the Boston area. My specialty is BRRRR. However, I chose to invest out of state in markets that better aligned with my investing goals and where the barrier (cost) to entry was lower. I'm happy to connect offline and share my strategy and what works for me.

If investing out of state isn't your thing, I'd recommend going with multifamily so you always have multiple streams of revenue to hedge any financial risks.  I'm happy to talk through that with you more as well.  They always say, you make money on the purchase....meaning buying a house that tightly aligns with your goals, both strategically and financially.  Again, I'm happy to share my experiences in the event that they help you in some way.

Best of luck!

-Dave

@Ian Meyer you’re very welcome! You ask great questions. Feel free to reach out at any time!

@Ian Meyer what kind of investing are you looking to do? The only thing you *might* not be able to do is wholesaling. I'm an agent and investor in Massachusetts, Tennessee, and Georgia. I BRRRR, flip, and buy and hold. I leverage my license for helping me with my own deals, and I also help other investors by serving as their agent. There are no laws against representing yourself as your own agent when you are an investor.

Hopefully this helps! Feel free to reach out with any questions!

@David Shapira I came across these same challenges in Massachusetts… my solution… out of state BRRRR in a more investor friendly market. Closing on our second house this year on Monday, from a wholesaler that was interviewed on the BP roomie podcast!

Happy to connect and share more about my journey.

I'm curious to learn how folks have structured financing when leveraging both hard money and private (family/friend) money.

For example, if you have hard money that covers 80% purchase and 100% rehab, then a private (family/friend) money that covers the remaining 20% purchase as well as holding costs and initial rehab costs, what kind of rates and payment terms did you settle on for your private (family/friend) lender? 

Would love to see how creative folks have gotten!

This is a tough one! Often times, as I'm sure you're finding, you are limited to a Market Comparative Analysis - as you are attempting to do now. In situations such as this, if it's a multi-family, an appraiser might use Gross Rent Multiplier and/or CAP rate and compare to other large multi-family properties in the town/city/area code. Sometimes an appraiser might also use the cost comparative method (cost to replace the asset). In this case, you might want to try and leverage a R/E agent in the area and get their take.

Personally, it's risky, since you can't be as sure of the ARV. If you have your heart set on this building though, I'd use the Gross Rent Multiplyer (how many months it would take to pay the property off with the "gross rent") and the CAP rate - then connect through facebook (join the REIA group on FB) and post a quick question to the audience to see if those numbers look appropriate for the given area that you are investing in.

Best of luck!  Feel free to reach out with any questions.

@Anastasios Sakellariou it’s a pleasure to meet you! I too live in the Boston area, though I now mainly invest out of state. What real estate investing approach are you most interested in pursuing?

@Mason Hickman the circumstances could be different for an out of state property that was initially going to be for long term rentals. Either way, just trying to learn. Thank you for your input!

@Mason Hickman hey Mason! Not here in the Cape, but would be interested in considering it for our property in the TN/GA market.